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Royal Air Maroc to grow long-haul routes, expand to China and consider joining a global alliance

Analysis

Royal Air Maroc is weighing whether global alliance membership will help attract more premium travellers and provide connectivity to other parts of the world. An alliance would benefit from RAM's position in Morocco but also central/west Africa, RAM's largest international market after Europe.

RAM could use a premium push as incoming 787s prompt an increase in business class seats while RAM's long-haul markets prepare for growth. Sao Paulo will increase a little, while RAM expects to increase Montreal and New York JFK service to double daily over the peak summer 2015, although only New York is so far benefitting from this. Frequency and up-gauging will mean RAM achieves 53% higher growth at its peak in New York than in 2014.

This expansion may prove too ambitious, as might a prospective Casablanca-Beijing service, RAM's first to Asia. Morocco is eager to receive Chinese tourists, but this may not be the way to tap the market. RAM planned to resume service to Dubai, but cancelled it - coincidentally or not - after Emirates increased capacity to Morocco.

This is the second of a two part report on Royal Air Maroc.

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